Netcapital (NCPL) investor relations material

Company overview and business model

• Operates a fintech platform enabling private companies to raise capital online from both accredited and non-accredited investors, leveraging Regulation Crowdfunding (Reg CF) and Regulation A (Reg A) under the JOBS Act.

• Generates revenue through listing fees, portal fees (4.9% of capital raised), and success fees, with additional income from consulting and broker-dealer services.

• Platform is scalable, automated, and supports over 100,000 users, with a focus on technology-driven onboarding and compliance.

• Recently expanded to include Reg A offerings via a broker-dealer subsidiary and is exploring secondary trading features for liquidity.

Financial performance and metrics

• Fiscal year ended April 30, 2025: revenues of $869,460, gross profit of $829,116, and net loss of $28.3 million.

• Significant revenue decline from prior year due to cessation of equity-based consulting services; prior year revenue was $4.95 million.

• Portal fee revenue dropped 33% to $589,074, and listing fee revenue fell 53% to $207,500, reflecting fewer offerings and lower investment volume.

• As of September 30, 2025, cash and cash equivalents totaled $2.82 million.

• Recorded $19.9 million in impairment charges on portfolio company investments in fiscal 2025.

Use of proceeds and capital allocation

• Will not receive proceeds from resale of shares by selling shareholders; may receive up to $9.21 million if all warrants are exercised for cash.

• Any proceeds from warrant exercises will be used for working capital and general corporate purposes, including sales and marketing investments domestically and internationally.